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Title Bifurcation of Real Estate in Thailand?
Transcript of the above video:
As the title of this video suggests, we are discussing title bifurcation. Now what are we talking about here when we are talking about title bifurcation? What we are talking about is basically a situation wherein, and for those who are unaware, foreign nationals are restricted from owning property in Thailand; they cannot own land in Thailand without a great many sort of special dispensations. As we have discussed in other videos, since the turn of the millennium that has only occur to half a dozen times approximately and specifically in the context of rather large internationally endeavours.
Long story short, as a practical matter especially from a residential standpoint, foreign nationals cannot own real estate in the sense of land. So actual real property, what we think of when we think of real estate and property is land. As I have discussed in other videos that maybe exceptions for example for condos here in Thailand but we are talking about land here. So what are we talking about when we talk about title bifurcation? Well we have utilized this as a methodology for some clients over the years that it is possible to have title split if you will, bifurcated, between title to a residence, to a structure, on a particular piece of property and the property itself. This can be a very effective way of allowing a foreign national to have certain enjoyment of real estate in Thailand without necessarily having any rights to the land itself.
This sometimes can be very optimal in circumstances where a foreign national is looking to purchase something with a spouse and they have a Thai spouse; that might be one of the situations where it's optimal. We have also seen where arm's length if you will sort of transactions occur where an underlying Thai landlord will allow bifurcation of title for example to a structure on the given land.
Now as with everything, as we have discussed many times on this channel, it should be noted that the specific circumstances in a given case are going to dictate whether or not a given legal structure is going to be viable. So those who are interested, it may not be a terrible idea to contact a legal professional, gain some insight and guidance into how best to proceed.